Ariz. Admin. Code § 19-4-101

Current through Register Vol. 30, No. 44, November 1, 2024

Section R19-4-101 - Definitions

A. The definitions in A.R.S. § 5-1301 apply to this Article

B. Additionally, for purposes of this Article and the Act, and unless the context requires otherwise:

1. "Act" means Title 5, Arizona Revised Statutes, Chapter 11.

2. "Affiliate" means a person, directly or indirectly, through one or more intermediaries, who controls or is controlled by, a responsible party.

3. "Applicant" means any person who has applied for a license under the provisions of the Act or this Article.

4. "Application" means all the forms and documents that are required to be submitted or completed to obtain a license under the provisions of the Act or this Article.

5. "Article" means Arizona Administrative Code, Title 19, Chapter 4, Article 1.

6. "Commercially Reasonable Terms" includes, for the purposes of league data only, the following non-exclusive factors:

a. The extent to which event wagering operators have purchased the same or similar official league data on the same or similar terms;

b. The speed, accuracy, timeliness, reliability, quality, and quantity of the official league data as compared to comparable nonofficial league data;

c. The quality and complexity of the process used to collect and distribute the official league data as compared to comparable non-official league data; and

d. The availability and cost of similar league data from multiple sources.

7. "Designee" means a person authorized to act on behalf of an event wagering operator and who is responsible for the management and control of event wagering operations. A designee is not independently eligible to become an event wagering operator, nor is it eligible to transfer licensure. The term is not inclusive of designee as referenced in A.R.S. § 5-1316(C).

8. "Event Wager" means a wager on sports events or other events, portions of sports events or other events, the individual performance statistics of athletes in a sports event or combination of sports events or the individual performance of individuals in other events or a combination of other events through any system or method of wagering.

9. "Event Wagering Platform" means the internet interface to a single event wagering system, which is designed to accept mobile event wagers through a website and/or a mobile application.

10. "Event Wagering System" means the hardware, software, firmware, communications technology or other equipment to allow patrons to place event wagers, regardless of whether event wagers are offered at retail, to include kiosks, and/or over the internet on an event wagering platform.

11. "Geofence Provider" means a person who creates a virtual perimeter for a real geographic location.

12. "Global Risk Management" means the management of risks associated with event wagering, the setting or changing of event wagers, cutoff times for event wagers, acceptance or rejection of event wagers, laying off of event wagers, lines, point spreads, and odds for event wagers, and other activity relating to event wagering.

13. "Independent Test Laboratory" means a person who provides testing services for responsible parties to certify that event wagering systems, processes, and programs meet the technical requirements of the Act and this Article.

14. "Integrity Monitoring Provider" means an independent third person who assists in the identification of suspicious wagering activity.

15. "Internal Control System" means the minimum level of operational controls developed by a responsible party to ensure the integrity of event wagering.

16. "Kiosk" means a device located within a retail wagering area that interfaces with an event wagering system and may be utilized by a patron to place event wagers, redeem winning tickets, redeem vouchers, open a player account, and make player account deposits and withdrawals.

17. "League Data Provider" means a person who provides statistical results, outcomes, and other data related to approved events.

18. "License" means an approval issued by the Department to a person pursuant to this Article to be involved in the operation of event wagering.

19. "Licensee" includes any person licensed by the Department under this Article.

20. "Marketing Affiliate" means a person who is involved in the promotion, marketing, and recruitment for event wagering business in exchange for a commission or other fee based on the number of registrations, wagering activity, or a percentage of adjusted gross event wagering receipts. Owners, operators, promoters, tribes, tribally owned entities, and their designees, as referenced in A.RS. § 5-1307(a) and (b), shall not be subject to licensure as Marketing Affiliates.

21. "Outstanding Event Wagering Liability" means the sum of the aggregate amount wagered on events whose outcomes have not been determined and the amount owed but unpaid on winning wagers.

22. "Patron" means a player or participant who places event wagers pursuant to the Act and this Article.

23. "Player Account" means an account established by a patron with a responsible party so that the patron may place event wagers with that responsible party. Player accounts may also be referred to as event wagering accounts.

24. "Responsible Party" means event wagering operators, designees, limited event wagering operators, and management services providers.

25. "Retail Wagering Area" or "Retail" means the designated area within an event wagering facility where event wagering activity under the Act takes place.

26. "State" means the State of Arizona not to include the Indian lands within its boundaries.

27. "Supplier" or "Vendor" includes persons who satisfy the definition of supplier in the Act and persons who provide goods and/or services, directly or indirectly, to a responsible party in connection with event wagering pursuant to the Act, including those referred to as ancillary suppliers for purposes of the licensing fee structure. Ancillary suppliers include:

a. Affiliates;

b. Bookmakers;

c. Data centers providing physical security and infrastructure;

d. Geofence providers;

e. Identity verification service providers;

f. Independent test laboratories;

g. Integrity monitoring providers;

h. League data providers;

i. Marketing affiliates;

j. Payment processors; and

k. Any other person as determined by the Department.

28. "Suspicious Wagering Activity" means unusual event wagering activity that cannot be explained and is indicative of any of the following: match fixing, the manipulation of an event, misuse of inside information, a potential breach of a sports governing body's internal rules or code of conduct pertaining to event wagering, any other conduct that corrupts the outcome of an event, and any other prohibited activity.

29. "Ticket" means a printed or electronic document utilized to record a wager by an event wagering system.

30. "Unusual Wagering Activity" means abnormal wagering activity exhibited by one or more authorized participants and considered by a responsible party as a potential indicator of suspicious wagering activity.

31. "Voucher" means a printed or electronic wagering instrument which may also be redeemed for cash or cash equivalents.

Ariz. Admin. Code § R19-4-101

Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.